Nasdaq, VanEck Partner to Launch ‘Crypto 2.0’ Futures Contracts
The world's second largest stock exchange has partnered with VanEck, an investment management company, to launch a new cryptocurrency financial product.
CoinDesk, director of digital asset strategy at Gabor Gurbacs-VanEck, announced this partnership, officially announced at the Consensus: Invest conference, will bring to market a regulated Crypto 2.0 gift type agreement.
According to Gurbacs, the product to be launched early next year will be the first of several products.
"What I want to point out is that in collaboration with [Commodity Futures Trading Commission] we have to go a few more miles to present a new standard in custody and surveillance," he commented in the panel.
In a follow-up interview, Gurbacs told CoinDesk that the gift product could be considered an "upgrade" to the current regulatory standards surrounding bitcoin gift products.
By leveraging Nasdaq's stock market surveillance system, called SMARTS, and the reliable price benchmark provided by MVIS, the goal is "to gain the trust of regulators and institutions to engage," Gurbacs said.
SMARTS is software that hosts hundreds of search algorithms designed to automatically detect suspicious market activity such as spoofing and trading. Gurbacs calls this technology a "big cop engine" and explained that the technology will ensure bitcoin futures trading in a fair and orderly way.
State of play
The Commodity Futures Trading Commission (CFTC) has approved two bitcoin gift products operated by the Chicago Board Options Exchange, the Gemini Exchange and the Chicago Mercantile Exchange in partnership with Crypto Facilities.
These futures contracts are paid in cash, so you do not have to move "physical" bit coins to settle your account at maturity. In contrast, the simultaneous bit coin gift product, which will be launched in January next year by Bakkt sponsored by the Intercontinental Exchange, will be physically paid and will be paid by investors who have signed a maturity contract .
Gurbacs did not disclose whether or not anticipated beacon gift products between Nasdaq and VanEck's price index cancer MVIS were similarly cash-supported. Nasdaq representatives did not comment on the issue anymore.
Nonetheless, Gurbacs stressed the upcoming launch date for Bitcoin futures in the first quarter of next year, hinting that "2019 is a lot to expect."
In addition, VanEck's proposed physically-supported Bitcoin Exchange -Traded Fund is expected to be finalized by the Securities and Exchange Commission (SEC) on February 27, 2019, in partnership with Blockson technology firm SolidX.
"We believe that 2018 is the year of regulation and 2019 is the year of enforcement."
Photos of Stan Higgins for CoinDesk
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